Income Tax Credit Calculation

Chile's legislation stipulates that the Fixed Asset may have an annual and monthly write-off (credit) provided that it falls under the following situation:

• Physical assets from the Fixed Assets newly acquired or conclusion of construction during the fiscal year;

7ea04031-cb06-41ae-a29f-d6a72edc280cImportant:

• Assets that may be used for dwelling or transport purposes (excluding trucks, pickup trucks and other vehicles meant exclusively for transporting cargo), are not entitled to credit.
• The total credit amount cannot exceed 500 UTM (Monthly Tax Units). In this case, the UTM of the final month of the year is considered.
• The current (03/2003) percentage used for writing-off is 4%.
• To carry out monthly credit, the admin-IN-316fd0ae-5f3c-4db9-ac26-cbdf4ff8a7d1-1507579308097-7879699b-ad79-40d5-9b4b-68a045f84a69 parameter needs to be set as 0.

 

In the Use Credit (N1_USACRED), in the Fixed Assets Register of the SN1 table, one may define whether the credit must be considered while calculating the annual write-offs (1–Yes, 2-No).

This option is provided by configuring the parameters:

Parameter

Description

Dt. Termination

Final Factor Date

Factor

Conversion Factor

Index

Conversion Index

 

• admin-IN-316fd0ae-5f3c-4db9-ac26-cbdf4ff8a7d1-1507579308097-8a373667-4068-482d-ab9b-fcd4f7554105 – Date Type, content suggested for the year 2003, must be 20021231, objective indicates the date of the last calculation made, calculation is made only once a year.
• admin-IN-316fd0ae-5f3c-4db9-ac26-cbdf4ff8a7d1-1507579308097-8a373667-4068-482d-ab9b-fcd4f7554105 – Numeric, content: 4 (default 4, if does not exist). Description: Percentage used for calculating the annual Fixed Asset credit. Identifies the percentage amount for calculating the annual write-off, which can be altered according to legal requirements.
• admin-IN-316fd0ae-5f3c-4db9-ac26-cbdf4ff8a7d1-1507579308097-8a373667-4068-482d-ab9b-fcd4f7554105 – Character Type, content: 4.  Description: The currency to be considered for identifying the UTM, indicates the number of the currency to get the UTM rate.
• admin-IN-316fd0ae-5f3c-4db9-ac26-cbdf4ff8a7d1-1507579308097-8a373667-4068-482d-ab9b-fcd4f7554105 – Numeric Type, content: 500 (default 500, if the parameter does not exist).  Description: maximum amount in UTM to be considered in the sum total of the annual Fixed Assets credit. Indicates maximum amount in UTM.
• admin-IN-316fd0ae-5f3c-4db9-ac26-cbdf4ff8a7d1-1507579308097-7879699b-ad79-40d5-9b4b-68a045f84a69 - Character Type, content: 1. Description: Determines whether the credit on the fixed asset goods is 0 = Monthly or 1 = Yearly.

 

7ea04031-cb06-41ae-a29f-d6a72edc280cImportant:

Complementing the alterations, item 11 – Write-off of Asset acc. Article 33 in Table 16 - Tables of Asset Occurrences.

Procedures:

Performing  the annual write-off of an asset:

1. In Income Tax Credit Calculation, place the cursor on the asset and select Write Off.

The write-off window is displayed.

2. Fill in the data according to the field's help instructions.
3. Check the data and confirm write-off.